GWRS Initial Expansion Construction Update

OCWD Board of Directors July 1, 2015

Features of GWRS Initial Expansion

• Existing facility production increased from 70 mgd to 100 mgd (72,000 afy to 103,000 afy)

• GWRS original design allows for two 30 mgd expansions up to 130 mgd, eventually

• Expansion includes 10 new MF cells and 5 new UV trains using identical equipment to existing facility

• Six new RO units include some enhancements over existing RO units: energy recovery devices, interstage EC and flow meters

• New post treatment system design based around Tekkem lime system

Flow Equalization Tanks

Equalization Tanks

Pump Station

Fill/Drain Pipeline

SEJB6

Contract Schedule Status

Notice of Award 9/7/2011 Notice to Proceed 10/20/2011 Time of Completion 1350 Calendar Days Original Contract Completion Date 10/18/2014 Authorized Time Extensions 255 Calendar Days Current Contractual Completion Date 06/30/15*

*Close out activities and paperwork will extend to July 31, 2015

Contract Close Out Activities • Submittal of electronic versions of final approved

submittals by contractor • Submittal of final O&M manuals by contractor • Submittal of final warranties by contractor • Completion of punch lists for all areas • Submittal of red line drawings by contractor and

preparation of final drawings by design engineer

Project Budget Project Item Original Project

Budget Revised Budget

Design Services (Includes Approved Amendments No. 1 – 4) (B&V) $ 6,500,000 $ 6,500,000

Amendment No. 5 - Design Services During Construction (B&V) Approved Amendment No. 6

$ 4,416,000 $ 4,416,000 $ 293,900

Construction (McCarthy Building Co.) Change Orders No. 1 - 23

$ 115,090,000 $ 115,090,000 $ 4,622,966

Construction Management (Parsons) Approved Amendments No. 1- 5

$ 6,693,164 $ 6,693,164 $ 1,541,612

Materials Testing (Converse) Approved Amendment No. 1

$ 1,052,864 $ 1,052,864 $ 73,000

Engineering, Legal, and Administration (ELA) Permit Services (DDB Engineering)

$ 1,100,000

$ 923,160 $ 176,840

Project Contingency $ 7,847,972 $ 1,316,494 Total $ 142,700,000 $ 142,700,000

Change Order Process • 5% contingency added to project budget to cover project changes

during construction • If an issue arises contractor issues a Request for Information (RFI) • If RFI response results in a change in project a Request for Proposal

(RFP) summarizing how issue is to be addressed • Contractor issues a cost estimate for the RFP • The final cost is negotiated between contractor, CM and OCWD • Once cost is finalized a Field Change Order (FCO) is issued • FCOs are combined into a formal change order requiring OCWD

project manager and general manager approval

Change Order Summary • 1287 RFI issued to date • 23 change orders issued to date containing 466

individual FCOs • Largest change was related to contaminated soils issue

(8 FCOs totaling $963,222 issued to contractor) • Total cost of 23 change orders is $4,622,966 • Total savings realized through negotiations between

contractor, CM and OCWD on change orders totals $992,652

• Change orders 1-23 makes up 4.02% of 5% budgeted

Contamination Soils Issue

• SEFE tank site located south of original GWRS site on land leased from OCSD for $1 per year

• Pesticides, DDT (and DDE) and toxaphene, were found in the top 5-feet of soil at the SEFE site in concentrations too high for local landfill disposal

• Staff developed a hazardous waste removal plan and submitted it to OC Health Care Agency (and Regional Water Quality Control Board)

• Contractor developed a industrial hygiene program to protect workers and prevent contaminated soil from being hauled from site without proper testing

Soil Management Removal Plan

• OCHCA agreed that only soil disturbed by construction required testing and remediation

• Excavated soil as part of the construction was tested to determine appropriate landfill disposal site

• Soils that exceeded federal thresholds were trucked to hazardous landfill site in Yuma, Arizona

• Contaminated soil in areas undisturbed during construction were left in place

Microfiltration Area

Reverse Osmosis Building

SEFE Tanks & Pump Station

Recommendation

Ratify issuance of Change Orders 1-23 for Contract No. GWRS-2011-01 (McCarthy Building Companies, Inc.) in the amount of $4,622,966 for additional required work and an additional 255 calendar day extension to the original contract completion date.